Dial Reports Fourth Quarter and Full-Year 2003 Results.Business Editors SCOTTSDALE Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , Ariz.--(BUSINESS WIRE)--Jan. 26, 2004 The Dial Corporation (NYSE NYSE See: New York Stock Exchange :DL) today announced its results for the fourth quarter and full-year 2003. Fourth Quarter 2003 For the fourth quarter ended December December: see month. 31, 2003, net income was $24.9 million, or $0.26 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), versus a net loss of $29.2 million, or ($0.31) per share (diluted), in the fourth quarter of 2002. Net income in the fourth quarter of 2003 reflects a $9.6 million, or $0.10 per share (diluted), write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of assets and recording of income tax expense related to the Company's operations in Guatemala Guatemala, city, Guatemala Guatemala, city (1994 est. pop. 823,301), S central Guatemala, capital of the republic. Its full name is La Nueva Guatemala de la Asunción. In a broad, fertile, highland valley, c. and $1.7 million, or $0.02 per share (diluted), of expenses incurred as a result of the pending acquisition by Henkel Henkel KGaA (ISIN: DE0006048432, ISIN: DE0006048408) is an international household products company headquartered in Düsseldorf, Germany. The company has four business sectors operating in three strategic areas: Home Care . Excluding these items, net income in the fourth quarter of 2003 was $36.2 million, or $0.37 per share (diluted). Net income in the prior year's fourth quarter included a net loss of $59.4 million, or $0.62 per share (diluted), on the disposal of the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and a $0.7 million, or $0.01 per share (diluted) adjustment to the loss on the previously dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. joint venture. Excluding these special items, net income in the fourth quarter of 2002 was $29.5, or $0.31 per share (diluted). Attached is a reconciliation of reported net income to pro-forma net income, including the effect on diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the fourth quarter of 2003 rose 3.9 percent to $346.7 million from $333.6 million in last year's fourth quarter. Net sales increased 2.9 percent in the Company's Domestic Branded segment and 15.9 percent in the International and Other segment versus the prior-year period. Excluding the impact of foreign exchange, International and Other segment sales increased 8.6 percent in the fourth quarter of 2003 versus the prior year period. Herbert M. Baum, The Dial Corporation's Chairman, President and Chief Executive Officer, said: "The quarter capped a year of meaningful growth for Dial. Overall, Laundry Laundry can be:
Before industrialization Care net sales rose 3.7 percent. Purex Liquid sales were up 9 percent and continued to drive the Laundry Care sales gains. Our smaller Purex Powder powder, any mass of fine particles or dust prepared by various mechanical means, e.g., grinding of solid substances, or by chemical means, e.g., precipitation from solutions. In a special sense, the word is applied to powdered propellant explosives, e.g. business was down 16 percent. Personal Cleansing net sales rose 3.8 percent behind the first quarter of 2003 launch of new body wash fragrances for Dial and Tone and the new Coast body wash. Air Freshener air freshener n → ambientador m air freshener air n → désodorisant m air freshener air n → net sales declined 4.9 percent primarily due to continued weakness in candle sales and promotional timing differences for Renuzit Renuzit is a brand of air fresheners produced by the Dial Corporation. The Renuzit brand once included a solvent-based spot remover and cleaner as well. How air fresheners work Air fresheners are basically perfume dispensers. Adjustables. Food Products net sales rose 5.8 percent primarily from sales increases in Treet TREET - E.C. Haines, 1964. An experimental variant of LISP1.5, implemented on the STRETCH computer. Basic structure was a trinary tree. ["The TREET Time-Sharing System", H.A. Bayard et al, Proc 2nd Symp Symb and Alg Manip, ACM (Mar 1971)]. [Sammet 1969, pp.457-461]. canned meat and Armour armour or body armour Protective clothing that can shield the wearer from weapons and projectiles. By extension, armour is also protective covering for animals, vehicles, and so on. Prehistoric warriors used leather hides and helmets. Star chili (language) CHILI - D.L. Abt. A language for systems programming, based on ALGOL 60 with extensions for structures and type declarations. ["CHILI, An Algorithmic Language for Systems Programming", CHI-1014, Chi Corp, Sep 1975] . Sales in our International and Other segment increased 15.9 percent from last year's fourth quarter due primarily to a 26.0 percent increase in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of sales that were helped by a weak dollar." Excluding special items, gross margin in the fourth quarter of 2003 was 38.0 percent compared to 37.3 percent in the fourth quarter of 2002 and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved 160 basis points to 18.7 percent versus 17.1 percent in the year ago fourth quarter. The improvement in operating margin is the result of higher sales and a reduction in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. due to fewer new product introductions. The Company generated operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $56.1 million in the fourth quarter of 2003 versus $66.9 million in the fourth quarter of 2002. Cash flow in the fourth quarter of 2002 included tax benefits from the sale of the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. business. The Company's cash balance on December 31, 2003 was $364.9 million (including $42.3 million in restricted cash) compared to $219.6 million on December 31, 2002. Full-Year 2003 Net income for the year ended December 31, 2003 rose to $125.9 million, or $1.31 per share (diluted), compared to $16.9 million, or $0.18 per share (diluted), in the same period a year ago. Earnings per share for 2003 include the previously described special items related to the write down of assets of the Guatemalan operation and expenses related to the pending merger with Henkel amounting to $11.3 million, or a $0.12 per share (diluted). Additionally, the year-ago period included a $98.3 million, or $1.04 per share (diluted), charge for the discontinued operations including an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge associated with the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill and trademarks as a result of a change in accounting principle and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustment of $2.8 million, or $0.03 per share (diluted), for reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of special charges taken in 2000 and 2001. Net sales for 2003 were up 4.9 percent to $1,344.9 million from $1,282.2 million in the prior-year period. Sales in the Domestic Branded segment rose 3.7 percent. International and Other segment sales were up 18.4 percent and excluding the foreign currency gains were up 13.6 percent. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the 12 months of 2003 was $180.7 million compared to $215.3 million in the prior-year period. Cash flow in 2003 was down versus prior year primarily due to a decrease of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $10 million of tax benefits and higher pension contributions of $27 million net of tax. Market Share Market shares for the fifty-two Adj. 1. fifty-two - being two more than fifty 52, lii cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" week period ending December 27, 2003 for Food Drug Mass including Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. were strong for three of our
four core franchises. Specifically, Purex Laundry detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its number two brand position on a volume basis achieving a 14.5 percent market share, a gain of 1.2 share points over year ago period. All of this market share growth was from Purex liquid detergents Noun 1. liquid detergent - a detergent in liquid form detergent - a cleansing agent that differs from soap but can also emulsify oils and hold dirt in suspension . Renuzit Air Fresheners outpaced category unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. growth for the period, resulting in a 21.3 percent market share up 0.9 share points from last year. The strongest performance was from Renuzit Adjustables and Renuzit Electric Scented Oil and Gel Refills. Armour Canned Meat unit market share rose 1.1 percentage points to 25.5 percent of the canned meat market. Personal Cleansing market share declined 0.1 percentage share points from the prior year period primarily resulting from a 0.8 percentage share point decline for Dial Bars, which offset the 0.4 share point increase for Dial Body Washes, a 0.2 share point gain for Liquid Dial and a 0.1 share point gain for Coast Bar. Pending Henkel Acquisition As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , the Company entered into a merger agreement on December 14, 2003, pursuant to which the Company will be acquired by Henkel KGaA KGaA Kommanditgesellschaft Auf Aktien (German: Limited partnership on shares; business entity) . The completion of the transaction is conditioned upon the approval of the merger by the Company's stockholders and the satisfaction of other customary closing conditions. Subject to the satisfaction of these conditions, the Company currently expects to complete the transaction in April 2004. Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Net Income Comparisons A reconciliation of the Company's reported net income to pro forma net income discussed in each of the first paragraphs under "Fourth Quarter 2003" and "Full-Year 2003" above is attached to this press release. The Company believes that the pro forma net income comparisons are useful because they exclude the impact of non-recurring items and provide a better comparison of the Company's ongoing business. The Dial Corporation, headquartered in Scottsdale, Ariz., is one of America's leading manufacturers of consumer products, including Dial(R) soaps, Purex(R) laundry detergents, Renuzit(R) air fresheners and Armour(R) Star canned meats. Dial products have been in the marketplace for more than 100 years. For more information about The Dial Corporation, visit the Company's Web site at www.dialcorp.com. Statements in this press release as to the Company's expectations, beliefs, plans or predictions for the future are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (the "PSLRA PSLRA Private Securities Litigation Reform Act PSLRA Public Service Labour Relations Act (Canada) "). Such forward-looking statements include the expectation that the Henkel transaction will close in April 2004. Forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and are subject to numerous known and unknown risks and uncertainties that could cause actual events or results to differ materially from those projected. For example, actual events or results could differ materially if the merger agreement between Henkel and Dial is terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: and the merger is not completed, resulting in disruptions to the Company's business and, under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , requiring the Company to pay to Henkel a termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. of $110,000,000. These and other factors that could cause actual events or results to differ materially from those in the forward-looking statements and the terms of the merger agreement entered into by Dial and Henkel are described in "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Results of Operations and Financial Condition - Factors That May Affect Future Results and Financial Condition" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002 and in the preliminary proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other the Company filed with the SEC on December 24,2003. These preliminary proxy materials can be reviewed on the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. or on the Company's web site at www.dialcorp.com . Due to these inherent uncertainties, the investment community is urged not to place undue reliance on forward-looking statements. In addition, the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to projections over time.
THE DIAL CORPORATION
Summary of Operations
Unaudited
Quarter Ended Year Ended
-------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
----------------------------------------
(In millions, except per share data)
Net sales $346.7 $333.6 $1,344.9 $1,282.2
Costs and expenses:
Cost of products sold 214.8 209.1 837.2 803.7
Asset writedowns and other
special items (net gain) 7.4 (0.5) 7.4 (1.7)
---------- --------- --------- ---------
Total cost of products sold 222.2 208.6 844.6 802.0
Selling, general and
administrative expenses 67.1 67.5 259.1 259.9
---------- --------- --------- ---------
Total costs and expenses 289.3 276.1 1,103.7 1,061.9
Operating income 57.4 57.5 241.2 220.3
Interest expense (6.2) (7.8) (25.7) (30.0)
Other expenses, net (2.2) (2.2) (9.5) (10.3)
Other special charges (1.7) - (1.7) -
Income from joint ventures - 0.3 - 2.1
---------- --------- --------- ---------
Income from continuing
operations before income
taxes 47.3 47.8 204.3 182.1
Income taxes 22.4 17.6 80.5 66.9
---------- --------- --------- ---------
Income from continuing
operations 24.9 30.2 123.8 115.2
Discontinued operations:
Adjustment to loss on
disposal of discontinued
Specialty Personal Care
segment, net of tax - 2.5 - 3.8
Adjustment to loss on
disposal of discontinued
Argentina business, net of
tax - - 2.1 -
Income from operation of
discontinued Argentina
business, net of tax - 0.5 - 3.6
Loss on disposal of
discontinued Argentina
business, net of tax - (62.4) - (62.4)
---------- --------- --------- ---------
Total income (loss) from
discontinued operations - (59.4) 2.1 (55.0)
Cumulative effect of the
change in accounting
principle, net of tax - - - (43.3)
---------- --------- --------- ---------
NET INCOME (LOSS) $24.9 $(29.2) $125.9 $16.9
========== ========= ========= =========
Basic net income (loss) per
common share:
Income from continuing
operations $0.26 $0.32 $1.32 $1.25
Income (loss) from
discontinued operations - (0.64) 0.02 (0.60)
Effect of change in
accounting principle - - - (0.47)
---------- --------- --------- ---------
NET INCOME (LOSS) PER SHARE
- BASIC $0.26 $(0.31) $1.34 $0.18
========== ========= ========= =========
Diluted net income (loss) per
common share:
Income from continuing
operations $0.26 $0.32 $1.29 $1.22
Income (loss) from
discontinued operations - (0.62) 0.02 (0.58)
Effect of change in
accounting principle - - - (0.46)
---------- --------- --------- ---------
NET INCOME (LOSS) PER SHARE
- DILUTED $0.26 $(0.31) $1.31 $0.18
========== ========= ========= =========
Weighted average basic shares
outstanding 94.8 92.9 94.0 92.4
Weighted average equivalent
shares 2.7 2.2 2.2 2.0
---------- --------- --------- ---------
Weighted average diluted
shares outstanding 97.5 95.1 96.2 94.4
========== ========= ========= =========
NET INCOME (LOSS) $24.9 $(29.2) $125.9 $16.9
Other comprehensive income
(loss):
Foreign currency translation
adjustment 0.3 96.0 1.3 60.8
Minimum pension liability
adjustment, net of tax 20.9 (24.9) 20.9 (17.7)
---------- --------- --------- ---------
COMPREHENSIVE INCOME $46.1 $41.9 $148.1 $60.0
========== ========= ========= =========
THE DIAL CORPORATION
Summary of Net Sales
Unaudited
Quarter Ended Year Ended
--------------------- -----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
----------- --------- ----------- -----------
(in thousands)
Laundry Care $126,584 $122,022 $489,884 $466,593
Personal Cleansing 94,824 91,339 380,687 367,858
Food Products 52,064 49,223 194,092 185,331
Air Fresheners 41,640 43,785 161,813 162,482
----------- --------- ----------- -----------
Total Domestic
Branded 315,112 306,369 1,226,476 1,182,264
International & Other 31,612 27,266 118,382 99,967
----------- --------- ----------- -----------
Total net sales $346,724 $333,635 $1,344,858 $1,282,231
=========== ========= =========== ===========
The Dial Corporation
Balance Sheet
Unaudited
Dec. 31, Dec. 31,
2003 2002
--------- ---------
ASSETS (In millions,
except share data)
Current Assets:
Cash and cash equivalents $322.6 $219.6
Restricted cash (1) 42.3 -
Receivables, less allowance of $0.8 and $1.3 77.1 88.5
Inventories 141.9 131.5
Deferred income taxes 11.9 23.2
Income tax receivable - 7.9
Current assets of discontinued operation - 18.5
Current assets held for sale 1.8 -
Other current assets 8.6 7.6
--------- ---------
Total current assets 606.2 496.8
Property and equipment, net 217.1 220.8
Deferred income taxes 11.5 57.0
Goodwill 312.5 312.7
Other intangibles, net 54.2 51.1
Non-current assets of discontinued operation - 2.2
Non-current assets held for sale 0.7 -
Pension and other assets 62.1 9.1
--------- ---------
Total assets $1,264.3 $1,149.7
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $93.3 $94.2
Income taxes payable 15.9 -
Current liabilities of discontinued operation - 13.5
Current liabilities held for sale 0.5
Other current liabilities 150.2 161.2
--------- ---------
Total current liabilities 259.9 268.9
Long-term debt 457.2 458.4
Post-retirement and other employee benefits 234.5 267.2
Other liabilities 5.4 6.2
--------- ---------
Total liabilities 957.0 1,000.7
--------- ---------
Stockholders' Equity:
Preferred Stock, $0.01 par value, 10,000,000
shares authorized; no shares issued and
outstanding - -
Common stock, $0.01 par value; 300,000,000
shares authorized, 108,120,795 and
106,372,531 shares issued 1.1 1.1
Additional paid-in capital 478.8 436.3
Retained income 110.2 8.8
Accumulated other comprehensive loss (10.1) (32.4)
Unearned employee benefits (54.5) (48.1)
Treasury stock, 10,987,984 and 10,910,433 shares
held (218.2) (216.7)
--------- ---------
Total stockholders' equity 307.3 149.0
--------- ---------
Total liabilities and stockholders' equity $1,264.3 $1,149.7
========= =========
(1) As previously disclosed, in connection with executing the merger
agreement with Henkel, the Company funded a benefit protection
trust with $42.3 million and has recorded this cash as restricted
cash. The arrangements covered by the trust include Dial's
employee compensation agreements, including change in control
agreements, employment agreements, supplemental pension plans,
separation pay plans and annual incentive and sales incentive
plans. These assets will be used solely to satisfy Dial's
obligations to its employees under these plans or, in the event of
Dial's bankruptcy or insolvency, the claims of Dial's creditors.
The Dial Corporation
Statement of Cash Flows
Unaudited
Quarter Ended Year Ended
----------------- -----------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- -------- -------- --------
(in millions)
CASH FLOWS PROVIDED BY OPERATING
ACTIVITIES:
Net income (loss) $24.9 $(29.2) $125.9 $16.9
Adjustments to reconcile net
income to net cash provided by
operating activities
Argentina business discontinued
operation, net of tax - 61.8 - 58.8
Adjustment to loss on disposal
of discontinued Argentina
business, net of tax - - (2.1) -
Adjustment to loss on disposal
of discontinued Specialty
Personal Care operation, net
of tax - (2.5) - (3.8)
Effect of change in accounting
principle, net of tax - - - 43.3
Depreciation and amortization 11.0 9.2 39.1 36.0
Deferred income taxes 10.1 2.8 43.9 1.3
Tax benefits from employee
stock option exercises 4.3 6.0 -
Asset writedowns and other
special items, net 7.4 (0.5) 7.4 (1.7)
Change in operating assets and
liabilities: - - - -
Receivables 11.7 2.6 11.4 (12.7)
Inventories (2.3) (1.7) (10.4) (9.5)
Trade accounts payable (4.4) (3.3) (0.9) 3.6
Income taxes payable (12.2) 15.4 23.8 68.8
Pension contributions - - (57.0) (13.1)
Other assets and liabilities,
net 5.6 12.3 (6.4) 27.4
-------- -------- -------- --------
Net cash provided by operating
activities 56.1 66.9 180.7 215.3
CASH FLOWS USED BY INVESTING
ACTIVITIES:
Increase in restricted cash (42.3) - (42.3) -
Capital expenditures (23.3) (14.4) (44.5) (34.5)
Proceeds from disposition of
discontinued operations - - 8.9 2.0
Acquisition of business and
purchase price adjustment - - - (1.1)
Investment in Argentina
discontinued operation - (0.5) - (6.7)
Proceeds from sale of assets - - 0.8 3.0
-------- -------- -------- --------
Net cash used by investing
activities (65.6) (14.9) (77.1) (37.3)
CASH FLOWS PROVIDED (USED) BY
FINANCING ACTIVITIES:
Increase (decrease) in long-term
debt (0.6) (0.6) (2.5) (0.3)
Net change in debt resulting from
interest rate swap termination - - - 13.4
Common stock purchased for
treasury - - (0.6) -
Dividends paid on common stock (8.6) (3.7) (24.5) (14.8)
Cash proceeds from employee stock
option exercises 12.8 8.3 27.0 17.1
-------- -------- -------- --------
Net cash provided (used) by
financing activities 3.6 4.0 (0.6) 15.4
Effects of foreign exchange rate
changes on cash - 0.1 - (2.1)
Net increase (decrease) in cash
and cash equivalents (5.9) 56.1 103.0 191.3
Cash and cash equivalents,
beginning of period 328.5 163.5 219.6 28.3
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $322.6 $219.6 $322.6 $219.6
======== ======== ======== ========
THE DIAL CORPORATION
Reconciliation of Reported Net Income / (Loss) to Pro Forma Net Income
Unaudited
in millions, except per share data
Quarter Ended
-------------------------------------
Dec. 31, 2003 Dec. 31, 2002
----------------- ------------------
Net Diluted Net Diluted
Result EPS Result EPS
Reported Net Income (Loss) $24.9 $0.26 $(29.2) $(0.31)
Asset writedowns and other
special items (net gain), net
of tax 9.6(1) 0.10(1) (0.7)(2) (0.01)(2)
Total Income/Adjustment to
Loss from Discontinued
Operations - - 59.4 0.62
Henkel transaction expenses 1.7 0.02 - -
Cumulative Effect of Change in
Accounting Principle - - - -
------- ------- ------- -------
Pro Forma Net Income $36.2 $0.37 $29.5 $0.31
======= ======= ======= =======
Year Ended
---------------------------------------
Dec. 31, 2003 Dec. 31, 2002
------------------- -----------------
Net Diluted Net Diluted
Result EPS Result EPS
Reported Net Income (Loss) $125.9 $1.31 $16.9 $0.18
Asset writedowns and other
special items (net gain),
net of tax 9.6(1) 0.10(1) (2.8)(3) (0.03)(3)
Total Income/Adjustment to
Loss from Discontinued
Operations (2.1) (0.02) 55.0 0.58
Henkel transaction expenses 1.7 0.02 - -
Cumulative Effect of Change
in Accounting Principle - - 43.3 0.46
--------- ------- ------- -------
Pro Forma Net Income $135.1 $1.40 $112.4 $1.19
========= ======= ======= =======
(1) Represents a $7.4 million pre-tax loss associated with the pending
sale of our Guatemala plant, plus related income taxes of $2.2
million.
(2) Represents an $0.8 million pre-tax gain associated with the
reversal of 2000 and 2001 Special Items and the previously
dissolved joint ventures.
(3) Represents a $3.8 million pre-tax gain associated with the
previously dissolved joint ventures, sale of the Mexico City
plant, reversals of 2000 and 2001 Special Items, offset in part by
a write down of fixed assets in the Guatemala plant.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion